Stock Analysis on Net
Stock Analysis on Net

lululemon athletica inc. (NASDAQ:LULU)

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

lululemon athletica inc., decomposition of ROE

Microsoft Excel
ROE = ROA × Financial Leverage
Jan 28, 2024 36.63% = 21.86% × 1.68
Jan 29, 2023 27.15% = 15.25% × 1.78
Jan 30, 2022 35.60% = 19.73% × 1.80
Jan 31, 2021 23.02% = 14.07% × 1.64
Feb 2, 2020 33.07% = 19.67% × 1.68
Feb 3, 2019 33.46% = 23.21% × 1.44

Based on: 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02), 10-K (reporting date: 2019-02-03).

The primary reason for the increase in return on equity ratio (ROE) over 2024 year is the increase in profitability measured by return on assets ratio (ROA).

Three-Component Disaggregation of ROE

lululemon athletica inc., decomposition of ROE

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Jan 28, 2024 36.63% = 16.12% × 1.36 × 1.68
Jan 29, 2023 27.15% = 10.54% × 1.45 × 1.78
Jan 30, 2022 35.60% = 15.59% × 1.27 × 1.80
Jan 31, 2021 23.02% = 13.38% × 1.05 × 1.64
Feb 2, 2020 33.07% = 16.22% × 1.21 × 1.68
Feb 3, 2019 33.46% = 14.71% × 1.58 × 1.44

Based on: 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02), 10-K (reporting date: 2019-02-03).

The primary reason for the increase in return on equity ratio (ROE) over 2024 year is the increase in profitability measured by net profit margin ratio.

Five-Component Disaggregation of ROE

lululemon athletica inc., decomposition of ROE

Microsoft Excel
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Jan 28, 2024 36.63% = 0.71 × 1.00 × 22.62% × 1.36 × 1.68
Jan 29, 2023 27.15% = 0.64 × 1.00 × 16.43% × 1.45 × 1.78
Jan 30, 2022 35.60% = 0.73 × 1.00 × 21.32% × 1.27 × 1.80
Jan 31, 2021 23.02% = 0.72 × 1.00 × 18.61% × 1.05 × 1.64
Feb 2, 2020 33.07% = 0.72 × 1.00 × 22.55% × 1.21 × 1.68
Feb 3, 2019 33.46% = 0.68 × 1.00 × 21.75% × 1.58 × 1.44

Based on: 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02), 10-K (reporting date: 2019-02-03).

The primary reason for the increase in return on equity ratio (ROE) over 2024 year is the increase in operating profitability measured by EBIT margin ratio.

Two-Component Disaggregation of ROA

lululemon athletica inc., decomposition of ROA

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Jan 28, 2024 21.86% = 16.12% × 1.36
Jan 29, 2023 15.25% = 10.54% × 1.45
Jan 30, 2022 19.73% = 15.59% × 1.27
Jan 31, 2021 14.07% = 13.38% × 1.05
Feb 2, 2020 19.67% = 16.22% × 1.21
Feb 3, 2019 23.21% = 14.71% × 1.58

Based on: 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02), 10-K (reporting date: 2019-02-03).

The primary reason for the increase in return on assets ratio (ROA) over 2024 year is the increase in profitability measured by net profit margin ratio.

Four-Component Disaggregation of ROA

lululemon athletica inc., decomposition of ROA

Microsoft Excel
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Jan 28, 2024 21.86% = 0.71 × 1.00 × 22.62% × 1.36
Jan 29, 2023 15.25% = 0.64 × 1.00 × 16.43% × 1.45
Jan 30, 2022 19.73% = 0.73 × 1.00 × 21.32% × 1.27
Jan 31, 2021 14.07% = 0.72 × 1.00 × 18.61% × 1.05
Feb 2, 2020 19.67% = 0.72 × 1.00 × 22.55% × 1.21
Feb 3, 2019 23.21% = 0.68 × 1.00 × 21.75% × 1.58

Based on: 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02), 10-K (reporting date: 2019-02-03).

The primary reason for the increase in return on assets ratio (ROA) over 2024 year is the increase in operating profitability measured by EBIT margin ratio.

Disaggregation of Net Profit Margin

lululemon athletica inc., decomposition of net profit margin ratio

Microsoft Excel
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Jan 28, 2024 16.12% = 0.71 × 1.00 × 22.62%
Jan 29, 2023 10.54% = 0.64 × 1.00 × 16.43%
Jan 30, 2022 15.59% = 0.73 × 1.00 × 21.32%
Jan 31, 2021 13.38% = 0.72 × 1.00 × 18.61%
Feb 2, 2020 16.22% = 0.72 × 1.00 × 22.55%
Feb 3, 2019 14.71% = 0.68 × 1.00 × 21.75%

Based on: 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02), 10-K (reporting date: 2019-02-03).

The primary reason for the increase in net profit margin ratio over 2024 year is the increase in operating profitability measured by EBIT margin ratio.